​​​FTSE 100, EUR/USD try to find support as WTI comes off Monday’s spike high

​​​Macro update

​Asian equities weaken: Japan’s Nikkei declined for a third consecutive session, falling around 1.2%, as Wall Street losses, rising bond yields and renewed weakness in AI-linked stocks weighed on sentiment.

​Oil extends gains: Brent climbed above $108 a barrel and WTI moved towards $103 after drone attacks in the Gulf and stalled Iran peace efforts reignited fears of further energy supply disruption.

​Middle East tensions escalate: Attacks on the UAE’s Barakah nuclear power plant and drones intercepted by Saudi Arabia heightened concerns that renewed US or Israeli strikes on Iran could trigger broader proxy attacks on Gulf infrastructure.

​Bond selloff deepens: Japanese and US government bond yields moved higher as rising oil prices intensified inflation concerns, with markets increasingly pricing the risk of central banks keeping policy tighter for longer.

​Dollar remains supported: The dollar stayed firm as risk aversion and higher US yields offset weakness against some major currencies, while the yen’s slide towards 159 per dollar kept investors alert to possible Japanese intervention.

​China data disappoints: The offshore yuan weakened after April data pointed to slowing Chinese growth, while last week’s Trump-Xi talks failed to deliver a significant breakthrough on efforts to ease the Iran conflict.

​FTSE 100 slips to six-week low

​The FTSE 100 is trading at levels last seen in late March and nears its 25 March high at 10,118 which may offer interim support. If not, the 9 March low at 10,079 may do so, together with the psychological 10,000 region.

​Resistance now sits between the last few weeks' lows at 10,150-to-10,176 ahead of the 11 May high at 10,287.

​Short-term outlook: bearish while below the 14 May high at 10,400

​Medium-term outlook: neutral with a bearish bias while below the 6 May high at 10,488

FTSE 100 daily candlestick chart

​EUR/USD tries to level out

EUR/USD has seen four straight days of falls and dropped to a six-week low - so far to $1.1609 - from where it is trying to recover with the late April low at $1.1655 being in sight. Further up meanders the 200-day simple moving average (SMA) at $1.1682 which may also be reached, once resistance between the late April-to-early May lows at $1.1655-to-$1.1677 has been overcome.

​A fall through Monday's $1.1609 intraday low may lead to the $1.1550 region being revisited. 

​Short-term outlook: potentially bullish while above $1.1606, targeting the $1.1655-to-$1.1682 region

​Medium-term outlook: neutral while below $1.1849 but above $1.1506

EUR/USD daily candlestick chart

​WTI trades in two-week high

​Heightened tensions in the Middle East provoked another surge in the oil price, so far to a two-week high at $104.37 per barrel. If overcome the mid-April high at $105.63 may be reached next, followed by the late March and early May highs at $106.86-to-$107.46.

​While Monday's intraday high at $104.37 caps, though, minor support below Friday's $101.57 high may be reached. It comes in around the 4 May low at $99.11.

​Short-term outlook: bullish while above the 15 May $97.23 low

​Medium-term outlook: bullish while above the 6 May low at $88.66

WTI daily candlestick chart